Brussels, 01/07/2008 (Agence Europe) - After publication on 30 June 2008 in the EU Official Journal of the regulation on the pursuit of the satellite navigation programmes (GNSS) EGNOS and Galileo, the European Commission and the European Space Agency (ESA) published a call for the expression of interest on Tuesday 1 July 2008 for the purchase of infrastructure (in other words the 26 remaining satellites and the land infrastructure required to launch them, receive signals, controls etc) for the Galileo system. Under an agreement struck at the Transport Council in November 2007 (see EUROPE 9554), the market is divided into six sections (system design and architecture; land-based segments of missions; satellites; launchers; and operations) with an outsourcing rule (at least 40% of the total value of activities must be outsourced using calls for tender to companies not belonging to the main contractors of any of the six sections) and the 2/6 rule (a potential company or consortium may not bid to be the main contractor of more than two sections). The procedure meets both the EU public tender rules and World Trade Organisation (WTO) rules and therefore does not prevent companies from outside the EU from applying, like from the United States, apart from for applications connected with national security (critical infrastructure). The outsourcing rule, desired by the European Commission, will open the door to small and medium-sized enterprises but may pose problems in the satellite section, currently dominated by two companies (Astrium EADS and Thales Alenia; the last small independent company, Surrey, of the UK was bought out by Thales). The call for tender is estimated to be worth some €2.1 billion (out of total funding of €3.4 billion, explained a European Commission spokesperson). The deadline for the submission of bids is 4 August 2008. After examining and drawing up a shortlist of bids, the ESA (aided by the Commission) will hold a 'competitive dialogue' (a genuine dialogue among the shortlisted candidates), due to kick off in September 2008 so decisions can be made (unlikely before the end of 2008). The European Commission's plan is for the selection procedure to end in the summer of next year at the latest, so that the purchases can be made and the system deployed in 2013. Tasks to be completed by the end of 2008 include: - formally setting up an informal GNSS programme management committee (the committee will meet for the first time on 10 September 2008); - setting up an interinstitutional Galileo panel (3 representatives of the Council of the EU, 3 representatives of the European Parliament and 1 representative of the European Commission); - changing the ESA's and the Commission's role in line with a Commission proposal; the Commission will publish draft legislation to change the role of the GSA (surveillance authority) that was initially designed to conclude a contract with a private agent (merging some of the GSA with the European Commission's unit in charge of Galileo might be feasible); and turning the current EGNOS managing body ESSP into a limited liability company and the EU signing a contract with this private contracting company running EGNOS to run from 1 April 2009. Further information: http: //estext231.estec.esa.int/Galileo-FOC/ or http: //emits.esa.int (A.By.)